Alongside numerous proposed changes, employees who work for three consecutive years with at least 500 hours of service each year would have to be made eligible to participate in an employer’s plan, but would be excluded from top-heavy and nondiscrimination testing.
A new EBRI analysis suggests some couples retiring in the near future could need as much as $370,000 in dedicated savings just for medical care; small wonder to see workers are hungry for advice on managing Medicare premiums and drug costs.
Two retirement industry thought leaders reflect on the year that was; both agree there is a tremendous opportunity to drive positive change in 2018; might a “new” Pension Protection Act be on the horizon?
Forty-six percent say they would “save less” or “stop saving” in their 401(k) if the tax deferred status of their plan was taken away, according to the Wells Fargo/Gallup Investor and Retirement Optimism Index.
Experts suggest an additional annuity safe harbor regulation is unlikely and perhaps even unneeded for promoting greater use of in-plan lifetime income solutions, given that sponsors’ hesitation is often misplaced.
Researchers have developed diverse approaches for quantifying the
adequacy of retirement income, focusing on different groups of retirees and employing
different definitions of income and adequacy, a CBO report notes.
The department believes an oversight bureau, created to assess the financial strength of annuity providers, would help employers and advisers become more comfortable including annuities in retirement plans.